Last month, the Office of County Counsel issued a cease-and-desist letter to Pacaso, urging it to halt operations in unincorporated areas of Monterey County where timeshares are not allowed.
Further, for activity in zones where timeshares are permitted under the Monterey County Code, the letter says Pacaso must apply for applicable permits if those operations are to continue.
Pacaso, however, maintains a general stance that the model it provides is distinct from timeshares. Promoted by the company as the “modern way to buy and own a second home,” the San Francisco-based company’s approach is multistep. It first purchases a home — usually vacation destinations like Tahoe, Napa, Sonoma or Palm Springs — then lightly refurbishes, furnishes and creates a limited liability company for the property.
The letter goes on to argue that Pacaso’s business model of “selling and then commercially managing short-term vacation use results in frequent, rotating occupancy … has a dire impact on housing supply and community integrity,” which are consequences the county says it specifically intends to minimize with timeshare regulations.
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